A general view of a residential apartment in Gurugram, Haryana. (File photo: Reuters)
In the latest hike, all tehsils and sub-tehsils in the district saw a 10-30 per cent hike in circle rates
Property prices in Gurugram are set to increase now, as the district administration has increased the circle rates in the Haryana district in the range of 10-30 per cent, with effect from April 1, 2023. The circle rates in Gurugram, below which property registration cannot be done by the revenue department, were last revised in January 2022 in the same proportion.
In the latest hike, all tehsils and sub-tehsils of the district saw an increase in circle rates. These tehsils are Gurugram, Farukh Nagar, Pataudi, Sohna and Manesar; While the sub-tehsils are Kadipur, Hasru, Wajriabad and Badshahpur.
The hike in circle rates will now lead to an increase in the prices of homes, offices and agricultural land in Haryana’s Gurugram.
While circle rate is the rate below which a property cannot be transferred to another person, market rates are higher than this and depend on market demand and supply, convenience in the area, connectivity etc.
Revised circle rates for the entire Gurugram district can be checked https://gurugram.gov.in/collectorrates/,
what the developers say
The hike in circle rates in Gurugram has evoked mixed reactions from developers.
Kunal Rishi, chief operating officer, Paras Buildtech, said, “While the increase in circle rates may surprise home buyers and property investors, the district administration’s decision is justified based on the prevailing market conditions. It has experienced a significant increase in sales and property prices in one year, resulting in the need for higher circle rates.”
He said these rates represent the minimum prices at which a property is registered with the revenue department during transfer, and the stamp duty collected is an important source of revenue for the state government. Despite the high taxes that homebuyers and property investors may have to face, growth is necessary to maintain a thriving and sustainable real estate market in the long run.
Welcoming the move, Vivek Singhal, CEO of Smartworld Developers, said, “The increase in circle rates in Gurugram is a step in the right direction by the government. By reducing the gap between market value and circle rate, the primary real estate market will This will further boost and will be a right step towards increasing transparency in the real estate industry and promoting organized growth.”
Santosh Agarwal, CFO and executive director of Alpha Corp, differed with the view that circle rates are only an indication of pricing and not the actual value. In the current scenario, increasing the circle rates would be impractical.
“Due to the increase in circle rates, buyers may not invest in any property in the short term and may prefer to hold off on their purchase decision for now, which will impact the entire realty market. Any decision to increase the circle rate will lead to recovery weakens the process and has a detrimental effect on the real estate sector. A higher circle rate correlates to a higher registration cost, which translates to a higher acquisition cost and has an impact on property transactions,” They said.
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